Area

(6.6% of Brazil)

Coastline

Cities

15.2 million (PNAD 2015)

1st Northeast

4th Brazil

72.1% (BA)

98,3% (RMS – Greater Salvador)

US$ 72.2 billion

1st Northeast 2011 | 28.3 %

7th Brazil 2011 | 3.8 %

506.8 thousand new jobs (2007 – 2015)

US$ 16.3 billion = Exports + Imports

53.8% of all foreign trade (Northeast) and 4.1% (Brazil)

Source: IBGE, MDIC,CAGED

SOCIAL AND ECONOMIC INDICATORS

Trade Flow (2015)

Jobs (2014)

Urban population

Population

GDP (2015)

21 de março 2016Moody's America Latina Ltda.

("Moody's") today assigned issuer ratings of Ba2 on a global scale, and Aa2.br on a national scale to the state of Bahia .

BAHIA | Investments for 2016-2018

BAHIA

519 Enterprises

54,451 Jobs

US$ 23.5 billion

GREATER SALVADOR

22% Enterprises

35% Jobs

15% Investments

COUNTRYSIDE

78% Enterprises

65% Jobs

85% Investments

LUÍS EDUARDO

MAGALHÃES BARREIRAS

AREA: 564,692 km2 (6.6% of Brazil)

COASTLINE: 1,188 km

CITIES AND TOWNS: 417

JUAZEIRO

SUBAÉ

BAHIA

SANTO ANTÔNIO DE

JESUS

VITÓRIA DA

CONQUISTA

EUNÁPOLIS

SIMÕES FILHO

CAMAÇARI

ILHÉUS

BAHIA | Renewable Energy

Wind

HIGHEST WIND POTENTIAL IN BRAZIL

REGULATED MARKET (232 / 5,360 MW)

Solar

HIGHEST SOLAR POTENTIAL IN BRAZIL

REGULATED MARKET (32 / 894 MW)

LUÍS EDUARDO

MAGALHÃES BARREIRAS

BAHIA

VITÓRIA DA

CONQUISTA

JUAZEIRO

SUBAÉ

SIMÕES FILHO

CAMAÇARI

SANTO ANTÔNIO DE

JESUS

ILHÉUS

EUNÁPOLIS

LEADER IN PROJECTS

POTENTIAL AT (150M - 195,000 MW)

LEADER IN PROJECTS

INDUSTRIAL HUB

BAHIA | Agribusiness

JUAZEIRO

WESTERN BAHIA IS THE

OF GRAINS IN BRAZIL

SUBAÉ

LUÍS EDUARDO

MAGALHÃES BARREIRASHIGHEST MILK BAHIA

SANTO ANTÔNIO DE

SIMÕES FILHO

CAMAÇARIPRODUCTIVITY IN BRAZIL

JESUS

VITÓRIA DA

CONQUISTA

ILHÉUS

EUNÁPOLIS

SECOND LARGEST PRODUCER

AND HAS THE

NORTHERN BAHIA IS THE

OF WINE IN BRAZIL

SECOND LARGEST PRODUCER

EASTERN BAHIA HAS THE LARGEST

IN BRAZIL

EUCALYPTUS PLANTATION

PPPInfrastructure

Projects

BAHIA | Implemented PPP Projects

Suburb’s Hospital Itaipava Fonte Nova Arena Marine Outfall

Hospital for Infectious Diseases Salvador Metro System Diagnostic Imaging

OVER US$ 165 MILLION A YEAR IN PUBLIC PAYMENTS AND

MORE THAN US$ 1,65 BILLION IN INVESTMENTS

PPP

Opportunities

BAHIA | Infrastructure and Logistics

WEST VECTOR SYSTEM | Salvador-Itaparica Bridge – BR 242 Interconnection

Bridge | 12.3 km LONG | 32 m WIDE

INVESTMENT: US$ 2 BILLION

INVESTMENT:

US$ 925 MILLION SOUTH PORT

BAHIA | Infrastructure | FIOL

FIOL (WEST-EAST INTEGRATION) PORT - AIRPORT - RAILROAD

• FIOL 1,527 km (1,100km in Bahia)

• Capacity: 65 million tons / year

• Investment US$ 1.8 billion

• Model - Railroad right of way

• Outstanding Investment - Section I (Ilhéus to Caetité) US$ 341 million.

• Section II (Caetité to Barreiras) US$ 706 million

BAHIA | Infrastructure | SOUTH PORT

PROJECT FOR TWO TERMINALS FOR MINERAL AND AGRICULTURAL SHIPPING

• Location: Aritaguá district on the coast, 10km north of Ilhéus.

• Investment US$ 550 million (construction) + US$ 100 million (equipment)

• Investment: US$ 650 million

• Total area land: 1,860 hectares.

• Offshore bridge 3.5 km long, with one iron ore berth and one berth for bulk

agricultural goods.

Infrastructure – ZPE Bahia S.A.

Bahia Export Free Zone (EPZ)

Infrastructure – ZPE Bahia S.A.

1. Land Rental

• Rental of a "standard area" of 10,000 m2 / 1 ha (there are no limits on rents). Facilities constructions are of the companies responsibility.

2. Warehouse rental “Builttosuit”

• Alternatively, depending on the negotiations, ZPE Bahia would build the facilities/warehouses tailored ("Built to suit") and charge a higher rental fee (depending on the cost of construction, plus a margin - with full transparency).

3. Other alternatives

• Warehouses "Plug and play" as in Suape “CONE”: ZPE Bahia would finance the building of few standard warehouses, so that the investor could occupy immediately.

Investments alternativesCompanies interested in settling at the EPZ of Ilhéus will have available the following rentaloptions:

Letters of IntentCompanies such as AIRBUS, Antilles Seaplane and Anotonov have already confirmedtheir intent in implementing projects at ZPE Bahia S.A.

Infrastructure – ZPE Bahia S.A.

Exemption of investment

Reduction of bureaucracy

Flexibility of Currency Exchange

Suspension and Exemption of Taxez

Customs agility

Legal Security

Available logistics and easy access, currently formedby the Porto de Ilhéus (Harbour) and the futureAirport of Ilheus and the Porto Sul (Harbour) and theFerrovia (railway) Oeste Leste (FIOL)

The construction of the Porto Sul has beenapproved, with completion deadline for 2018, thefinal destination of the FIOL railway.

Next to GASENE (Gas pipeline Southeast toNortheast)

Large presence of raw-material.

Competitive Advantages

Infrastructure – ZPE Bahia S.A.

IRR of the project 16,24%

IRR of the shareholders 35,35%

Shareholders Payback 7 Anos7 years

(0) (0) 3 12 18 22

28

35 40

47 51 56

60 65 68 68 68

52,6%

82,9% 88,1% 90,2% 90,6% 92,2% 91,9% 92,9% 92,7% 93,2% 93,0% 93,4% 93,5% 93,5%

10, 0%

20, 0%

30, 0%

40, 0%

50, 0%

60, 0%

70, 0%

80, 0%

90, 0%

100 ,0%

(10)

-

10

20

30

40

50

60

70

80

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

20

31

20

32

Fluxo de Caixa Operacional Margem EBITDA

Maurity

Beginning

-

50.000.000

100.000.000

150.000.000

200.000.000

250.000.000

300.000.000

350.000.000

400.000.000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Receita Operacional Bruta

Constructions period when there are no revenue for the EPZ

Step 7 finished (100% rented by 2027).Maturation

Início

INVESTMENT: US$ 852 MILLION

METRO LINE 3

BAHIA | Infrastructure | LIGHT RAIL / METRO

BAHIA | Infrastructure | ROADS

BA-052 System

• Requalification and maintenance of the road system comprising BA052, BA148,BA432 and BA160 roads. (685 km)

• Current phase: modeling in

partnership with BNDES/IFC

• Public consultation: Jul/2016

• Tender: Oct/2016

• Contract: Feb/2017

• Investment:

US$ 300 million

BAHIA | Infrastructure | AIRPORTS

New llhéus Airport

• Two 3000-meter runways

• Investment: US$ 67.5 million

Porto Seguro Airport

• 2000 x 45 meter runway

• Proposed investment to upgradepassenger terminal and fire-fighting terminal

SALVADOR

ILHÉUS

PORTO SEGURO

RENOVATION AND UPGRADE OF

SALVADOR INTERNATIONAL AIRPORT

Salvador International Airport

• The new runway construction• Expansion of the passenger terminal

with 11 bridges

INVESTMENT: US$ 750 MILLION

GOVERNMENT SUPPORT

SUPORTE DO GOVERNO ESTADUAL

Incentivos Tributárioas

Programa Desenvolve (Lei 7.980/01 e Dec. 8.205/02) e

Indústria Eletroeletrônica (Dec. 4316/1995)Convênio ICMS Nº 130/2015 Desoneração da duplatributação ICMS

Redução do imposto de renda (75%) - incentivo do Governo Federal

27% do ICMS para importação de equipamentos de energia quando equipamento similares são produzidos na Bahia

Suporte para obtenção de Licenciamento Ambiental - CTGA

Intermediação junto aos agentes de financimento (Desenbahia e BNB)

Áreas para implantação dos projetos com valores subsidiados

Disponibilização de serviços de utilizadades (água, gás, eletricidade)

Acesso rodoviário às plantas

Projeto Estadual de Incentivo à Concessãode Estágio e Primeira Experiência Profissional

Ações para assegurar a contratação de serviços e aquisição de equipamento locais, movimentando a economia local

Desenvolvimento de Centros de Formação Profissionais em polos geradores de energia, ampliando as oportunidades de empregos locais

Articulação com órgãos do Governo Estadual e Federal além de Associações deIndústrias e Comércio

Superintendent of Investment PromotionSecretariat of Economic Development – SDE

Bahia State Government

+55 71 3115-7981+55 71 99624-1237www.sde.ba.gov.br

paulorbg@sde.ba.gov.br

Paulo Roberto Britto Guimarães

Vice-GovernorSecretary of Planning – SEPLAN

Bahia State Government

+55 71 3115-3694www.seplan.ba.gov.br

joao.leao@seplan.ba.gov.br

João Felipe de Souza Leão